Ripple (XRP) is one of the more talked about cryptocurrencies. However, this crypto has recently hit some bearish strides. With that said, it is now raising approximately $200 million in additional funding to accelerate its development efforts. Will that be enough to reverse its bearish slide?
Ripple recently saw a $200 million fund-raising round
The past week has seen Bitcoin and the entire cryptocurrency market face significant market volatility. Nevertheless, one of the high-profile cryptocurrency coins that was the most severely impacted was Ripple (XRP).
In fact, Ripple lost around 20% of its market value in a major price drop during the past week. At the time of writing, Ripple is even trading below a price of $0.19. Additionally, the altcoin saw a price drop as low as $0.178 at one point – the lowest Ripple price in around two years.
Nonetheless, this bearish trend is not irreversible. Rather, the news of Ripple’s new price lows came as the company recently raised additional capital – to the tune of $200 million. As such, Ripple has got plenty of funding if it intends to reverse this bearish price slide trend.
Furthermore, the company also recently said that 2019 was the strongest year of growth ever seen by the company. XRP is also a psychologically important altcoin seeing as it is the third-largest altcoin. Consequently, it is a major player in the cryptocurrency industry as a whole.
XRP has lost approximately 95% since its price high
If one juxtaposes the recent Ripple performance with historical highs, this downward trend is even more evident. In comparison, the XRP token saw a market valuation of around $3 back in early 2018.
This shows that Ripple is now at a price level where it has lost approximately 95% of its peak value. Although peak prices have little practical value, it does provide a striking comparison for just how far the XRP token has fallen in price since early last year.
If one examines the technical trading data, Ripple does not appear to show a strong likelihood of now emerging from this bear cycle trend. This is unlike other cryptocurrencies, such as Bitcoin, which do show signs of returning to a bullish market cycle trend.
Nevertheless, there is a silver lining to this low price level. Specifically, Ripple can now focus on executing its plans without an exaggerated market focus. Moreover, the fact that the company recently raised $200 million will surely help it in this endeavor.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.